How to Deal With Collection Agencies

As anyone who has been through collections will tell you, the collection agencies tend to lie and to cheat in order to manipulate the collections process to their advantage. So how do you regain your power as a consumer from the collection agencies? By following these nine suggestions, you can stop screening your phone calls and turn the collections process to your advantage. (See also: Always Answer the Call: Expert Advice on Debt Collection)

1. Know your rights.

A common complaint is that collection agencies do not play by the rules. They make harassing telephone calls and threaten to kill your dog. Why are they allowed to do this? Because we let them! Most consumers do not know their rights, so we leave it to the collection industry to police itself.

Nothing strikes more fear into the heart of a collection agent than a consumer saying, "According to the Fair Debt Collection Practices Act, you are not allowed to call me more than one time per day and no more than three times per week. If you call again, I will report you to the FTC and the Attorney General's Office." The very fact that you are demonstrating knowledge of your rights will make them behave quicker than a stern look from their mother.

2. Know your debt.

Every consumer is entitled to a free annual credit report from each of the 3 credit reporting agencies. By requesting your credit report, you will have a fairly good idea of how much you owe and to whom.

One lesser-known fact about your credit report is that items generally disappear from your report after 7 years from the date of last activity. If you have an item that is getting ready to fall off your credit report, do not take any action on that account! You will restart the entire 7-year time limit. If a collection agent calls you about a bill from 6.5 years ago, do not confirm this debt. Confirming a debt will restart the 7-year limit. Ask them to send you any paperwork that they have on this bill. Procrastinate taking action on this bill for another 6 months, and the debt will fall off your credit report. In most states, you are not under any legal obligation to pay a debt that has not had any action for more than 7 years.

This advice does not apply if you are planning to purchase a home. Mortgage lenders will see all of your debt — no matter how old it is. If you want to buy a house, you will need to pay down most of your debt.

3. Keep a written record of every call.

When a creditor or collection agent calls you, ask the caller for their full name, the name of their company, and their employee identification number. Every employee will have some type of identification number, so do not let them tell you otherwise. Gathering this information, along with the date, time, and reason for the call, will assist you in filing any necessary complaints with the FTC and AG's office.

If you are being hounded or harassed by creditors and/or collection agents, consider buying a recorder for your phone. A recorder will further assist you in filing any complaints against a specific person or company. Just remember to tell the caller that the call is being recorded.

In my experience, collectors will behave if you start the phone call by politely asking for their employee identification information and telling them that the call is being recorded. Once again, these actions tell the agent that they are dealing with an informed consumer who will not hesitate to report them to the FTC or AG's office.

4. Attitude is key.

When a collection agency calls you, they are expecting to reach a very rude and aggressive consumer. Imagine what a loop you will throw them for if you are calm, polite, and cooperative!

As difficult as it may sound, maintaining your composure allows you to have the upper hand when dealing with collection agents. As I stated earlier, the collections process is a game. The more composure you have, the more power you earn. This will translate into being able to set your own terms with the collection agent.

5. Keep your creditors informed.

The moment you know you will not be able to make a scheduled payment, call your creditor or collection agency. Usually, they will work out another payment option for you, or they might waive your scheduled payment. Creditors and collection agencies are less likely to work with you if they have to hunt you down. So, take the initiative to call them. Explain your situation and ask how they can help you.

Additionally, if you move, it is your responsibility to inform your creditors or collectors of your new address. If a creditor or collector cannot find you but can show they made a good faith effort to contact you, they can pursue legal proceedings without your direct knowledge. The next time you go to apply for a job or for credit, you might be surprised to learn that your wages are being garnished or that you have legal action listed on your credit report.

6. Get everything in WRITING!

Let's say your great attitude and cooperation has gotten the collection agency to agree to accept your suggested monthly payments. Do not send any money until you have this agreement in writing! Collection agencies are infamous for reneging on verbal "agreements".

If you pay a debt in full or work out a settlement offer with the creditor or collection agency, make sure to get these actions documented in writing.

7. Stick to your guns.

Never agree to a payment plan you know you cannot afford. If you know that you can afford to send the creditor $10 per month, tell them that. They will try to pressure you into paying more than you can afford. They will tell you to borrow from grandma, your church, or your kid's piggy bank. Do not allow them to tell you how much you can afford!

8. Never refuse to pay.

In the course of politely explaining to your creditors that you cannot afford their suggested payment of $250 per month, they will ask, "So, are you refusing to pay your bill?" No matter how angry you are, do not fall for this trap. They are trying to provoke you and have you on record as saying that you will not pay your bills. This will be used against you in court. Instead, calmly say, "I did not say that. I said I can only pay $X per month." If you continue to restate that you can only pay a certain amount per month, the collector will usually get so angry that they will hang up on you, or they will accept your offer.

9. Never give a collection agency access to your bank account.

Creditors and collection agencies have been known to take more than the authorized amount out of people's bank accounts. By providing them with your bank account information or by paying with a personal check, you are enabling this practice. Send payments by money order or Western Union. Not only will you protect your bank account information, but you will have another record of payment for your files.

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SB #1

A question out there for anyone who's reading. I've been reluctant to obtain my credit reports in the past because the Web sites always ask for a credit card number. The reports are free, so why do they need this? Anyone had any problems?

The free credit report you are entitled should not ask you for a credit card unless its been less than a year since your last free report. If it does then you are likely not hitting the correct site or its been less than a year.

I've done it both ways, mostly because I get the free one every year and another one every 6 months or so. I tend to use annualcreditreport.com and myfico.com

Usually it depends on where you are looking. If you are trying to get your report from an independent site like www.freecreditreport.com or www.truecredit.com, the reason they ask is they give you your reports and you are now on their monthly service to monitor your reports. The best thing to do is go to each reporting company (Equifax, Transunion, or your state page and search for free credit report to take you to the government page which will bypass any CC info). Hope that helps a bit!

Guest #4

Alot of these so called free sites require the credit card because if you don't cancel after say 30 days they will charge you every month untill you do cancel.

Guest #5

Your scam detector is working correctly. These are sites targeting people like you who are looking for the official government site. Their real purpose is to enroll you in "credit protection" and other dubious services.

There is one correct government site and you have to find it. It is NOT running ads and ir they do not manipulate search engines to get to the top. They actually

Re #2: Are you suggesting that it's okay not to pay your obligations? Are you recommending that if you've incurred a debt and the creditor (not necessarily a collection agency but just a regular merchant or service provider) has exhausted all means to collect the debt then reported you to the credit bureau, you should ignore the debt? Or am I missing something?

To SB, you shouldn't have to give a cc to get a credit report, just to get the credit score. Go to annualcreditreport.com.

You calculate the odds of what they can do. If you rent and are unemployed what can they take? If you just live on social security income they can't touch that. You'll find more and more retired folks running into debt they just can't pay back and our government seldom raises the SS income being they don't think the cost of living ever goes up, yet congress get their raises. It's a grey power revolt against the banks after years of ripping us off. Paybacks a bitch!

Most people who are being hounded by creditors and collection agencies probably don't have enough money to pay off all of their debts at this moment. (Or they wouldn't be being hounded by collectors.) In this case, they must prioritize which debts are going to get paid. If something is getting ready to fall of your credit report, then I recommend that this debt be at the bottom on your list of priorities. Let if fall off and focus your energies/efforts/money on more pressing debts. Once you get your finances back on track, you can go back and pay your past bills if that is what is important to you. However, most companies would probably tell you to keep your money. If they didn't really bother you for the money for 7 years, they probably aren't going to reopen your account so that you can pay off a debt they have written off. If you want to purchase a house, you will need to make an attempt to pay off these 7+ year bills so you can get a decent mortgage.

The fact that most items fall off our credit reports after 7 years is a nice provision for people who are trying to get their credit histories back on track. For people who are rebuilding their credit, I think they should take advantage of this provision. Do I think you should rack up debt and avoid creditors for 7 years? No. If you have made mistakes in the past and you're working to clean up your credit, do I think you should take advantage of this provision? Yes.

Can a collection agency access my credit with only canceled credit card information?

Guest #10

Here's a question...

I am being sent to collections over medical bills from an accident that I was involved in. I was not at fault in the accident and am fighting for a settlement with the other insurance company for them to pay my medical bills. What should I do? I've talked to the billing department at the hospital, and they put a hold on my bills for a while, but they've obviously sent me to collections since then.

The accident occurred in February. My credit is in good standing otherwise, but I cannot afford to pay these medical bills and my health insurance company will not pay them. The fight with the insurance company seems like it may last at least a few more months. Any suggestions greatly appreciated.

I'm sorry you are having to go through such a frustrating process! A couple of questions for you. Are you suing the insurance company personally? Do you have a lawyer? Usually what you are describing is a third-party-liability proceeding or "subrogation." This happens when your or your insurance company sues another party because they were at fault. If you are suing, then you are probably suing the other person in the accident. If the other person's insurance is being sued, then I imagine your health insurance company is handling the proceedings?

I have heard of insurance companies refusing to pay because of third party liability, but usually they communicate with the medical provider. Is your health or auto insurance refusing to pay? How much have you been told about the proceeding? The worst case scenerio is you may have to pay something on the bill, and then when the settlement comes in, you can claim against it with what you have had to pay out-of-pocket.

Bottom line is that your insurance company really should be communicating these things with you.

Guest #12

I'm assuming from your choice of words surrounding the accident that it was auto related.

You need to contact the other party's insurance company and make sure the limits of the policy haven't been exhausted. You then need to contact your insurer and explain the situation. If the other driver was underinsured, you may be able to collect the money for the bills from your own UI/UU policy limits.

Also, let your insurance company go after the at fault party and their insurer... Don't go on your own to a lawyer without consulting them first. Most people don't know that your insurance company will go to court for you in order to defend you or to recoup what they've spent. It's in your policy, but no one ever bothers to read them.

Your insurance should pay for the bills then go after the other insurance of the at fault party, providing you had full coverage. I have been in 2 not at fault accidents and both times either the other insurance or mine paid.

JH #15

I have several credit card bills that are in default (some over two years) but I would like to make restitution. Is there a way to do this in the proper manner? Should I contact them to show that I would like to pay them back. Many of them are closed out (write-off).

@JH -- most credit card companies will not reopen accounts that they have "charged-off" or "written-off". However, it never hurts to ask, right? Write them a letter telling them you would like to pay. If they accept your offer, make sure you pay them. If they send you a letter denying your offer, keep that letter. You can show potential creditors that you tried to make good on the debt, but that they wouldn't accept your money. Additionally, every consumer is allowed to place a 100 word statement on their credit report. Submit a statement saying, "I tried to pay-off accounts X, Y, and Z. They turned down my offer. Please contact me for further documentation."

@Guest -- talk to your collections agent and explain the situation. Send them any documentation you might have detailing your pursuit of money from the other insurance company. They might delay collections for a bit. If it turns out you do have to pay the debt, ask them for a debt payment plan that works for your budget.

Also, have you tried applying for or asking for financial aid from your hospital? I wrote a great article about this topic a few weeks ago. If the hospital tells you that they can't help you because the account is in collections, you can nicely ask them to pull the account out of collections. Yes, they can pull an account out of collections.

In the end, Andrea's right...you might to consult an lawyer regarding your claim.

OMG! I went through the same thing 2 yrs. ago! My situation is a little different.

Get a lawyer!! Pronto! The lawyer can call the bill collectors and let them know what the situation is. You can tell these bill collectors till your blue in the face what is going on but they won't believe you, they hear "stories" all the time and they don't know which to believe. Why didn't the other auto insurance pay? Anyways get a lawyer, don't do it on your own.

I had close to 100,000$ in medical bills because of an accident my cousin caused. We were traveling cross country to get to Michigan (my brother was getting married). It was me and her and my 2 boys. Well she ended up falling asleep driving. My truck flipped several times and we all went to the hospital. My auto insurance said because I was missing a certain coverage (PIP) on my full coverage insurance that I had to use my health insurance. My health insurance paid a portion and then they figured out it was from an auto accident. My auto insurance was then going to pay 100% of all my bills and my kids bills. Well it took so long to settle that my bills went into collections because I don't have that kind of cash. I had 16 medical bills just for my kids alone and yes the calls came and I told them what was going on and of course they didn't believe me. I had the insurance call them and send letters. I had the lawyers call too. The insurance took the sweet time getting the settlement done and my credit is not as good as it was. Which makes me so mad because this wasn't my fault. The bill collectors told me that even though the bills would get paid that they were still my bills and I had to take care of them. I almost would cry talking to them and I think they could hear it in my voice because some said they would wait a couple more weeks and for me to call them and let them know what was going on. Anyways I just got done with the settlement this year! What a big relief it was too!

Several years ago, I was hounded by a collector. He called me at work, at home, and he even called my neighbors! He was ruthless. I had a credit card that went from a $2500 balance to over $7500 due to late fees, over the limit, etc. I was young and did not know my rights and I did not know how to negotiate. I had gone through a period of unemployment, followed by several months of under-employment. (My many part time jobs barely paid for rent, food, utilities and gas for the car.)

Everytime the phone rang, and it was "Craig", I literally became sick to my stomach. He berated me, threatened me, called me a loser and a bill-paying dodger. I was in tears at the end of every conversation. He told me he was taking me to court for every dime of the $7500. (I did not realize at the time that he could not sue me from New York when I lived in Kentucky. He would have to have a local attorney file in a court in my area.)

One day he decided to play nice cop. He told me that if I could come up with $1500, he would accept that as a settlement. I went to my mother in tears and asked for the money. It was no easy stretch for her, but she gave me $1500 and I wired it to Craig. He called to confirm that he had received the $1500. It was late in the day on a Friday afternoon, and I felt the weight of the world lift off of my shoulders. I will never forget what he said then: "I will call you Monday to talk about when you can pay the rest of the balance." My heart sank. It was over that weekend that I began to really educate myself about debt and collections. Although I had not gotten the "settlement" in writing, I was prepared for Mr. Craig when he called again. I told him point blank not to call me again, and that if he did, I would contact an attorney. He never called again. But let me tell you, that man made my life a living hell for several months. I will never forget it.

Thank you for wonderful blog I really look forward to reading it. I wanted to share with you my experience recently of a debt collection agency from here in Australia. the Man (bully would be a better description) on the other end of the phone basically called me a liar when it came to me saying I had not received a letter from a law firm which he reckons I had.. I explained to him that i would not be the firtst time I have had mail go awol for several week or even months he gave a half hearted laugh and he goes I guess they were all bills? I nearly jumped down the phone at him at this stage and corrected him and I said no they wern't. I told him I could pay no more then 20 per fornight on the outstanding bill (489.00) becuae of my current obligations and my current working hours (hubby just lost his job) He said that wasn't good enough.

I told him I wasn't going to be able to pay anymroe until I had further funds to do that he asked me when that would be and I said in a about 2-3 months time due to my daughters school fee's and a few other bills that I am in the process of getting out of the way.

He still would not accept that...I aksed him his name, where he worked, and asked him for the phone number of his work and who was his boss the last two he would not give me at all.

He kept pushing that I pay more each week and I stuck my heels in and said no I won't be paying any more because I simply can not afford it. He wanted me to pay an extra $2.50 a week (yes I probely could of managed that from somewhere but at this stage every single cent is accounted for) and I told him no that was not possible as I needed every single cent I had to get by he laughed and said you are not going to starve if we take that money...I corrected him and said no I probley won't starve but my kids will because to us that is a loaf of bread that makes their breakfast and lunches for school...He told me that was a lie and I was making this more difficult for him.

I then moved on and he gave me two payment options to pay them dirctly or to pay the company that I owe the money too....I opted to pay the money directly to the compnay that I owe the money too. I asked him send out the details of the payments and the account details and he then said they don't do that I have to write it down and do it that way I declined and said I won't be paying anything until I have the payment agreement in writing and the account details in writing to make sure I have something to back me up if the account number i wrote down was wrong or he had given it to me wrong.

He still refused...I dug my heels in even further and informed him that i will not be paying anythign until I have the debt amount, to whom it is owed, and how much my agreed payment and the agreed account to which the money was to be paid was sent to me in writing. He got cranky at me and said that I was being difficult and his manager would be in contact!

I (being a bitch that i am) said whooo hooo that is good I can tell them how rude you are and how uncoperative you have been in regards to this debt I will also be lodging a complaint with the company you have been hired to represent and I will also be lodging a complaint with the relative authorities (Dept of Fair Trading in NSW).

The result he hung up on me with the parting words "we will see you in court"

that is my story with debt collection thank you for posting what rights some people have.

Most states require collection agencies to be licensed in that state to do business. Often the collection agency is national in scope and ignores this requirement when they make dunning calls to your home.

Most states have a web site that makes it easy to look up business licenses.

If the collection agency doesn't appear to have a business license in your state, report them, either to the same department where you looked up the business license information or the state attorney general's office.

This should turn off the calls for a while and give you the satisfaction of making the collection agency go through a few hoops and expense themselves.

In my case, I got dunned recently by a collection agency making automated calls to my home looking for someone who apparently had my telephone number six years earlier. I am enjoying a lot of schadenfreude after reporting them to my state's department of finance.

If you really are a deadbeat and don't want to pay your bills, you can also use this information when the collection agency sues you. If they haven't paid their fees to do business in your state, then they shouldn't have access to your state's courts, and their suit should be tossed out until they conform. That waste of expense may encourage them to settle.

And for those who say it's easier to just pay your bills on time, sure. Unless your spouse ran up the credit card on a slot addiction or you got t-boned by some jackass without insurance. There's always more to the story.

I received a letter from an attorney on an old debt. They said that I had agreed to send them the full amount of this debt almost $3000. By Sept. 28, and that it was considered late. They said that I entered into a voluntary agreement to installment payments. I have not talked to or sent any written agreement agreeing to any payments at all because the Statute of Limitations is up. Also this goes off of my credit report next year. Is this against the Fair debt collection practices act. As attorneys wouldn't they know better than to lie about this? What can I do about this false information? If I answer this will this start the Statute of Limitations all over again? I never agreed on any payment.

Hi
I had an unpaid Visa go to collections for $7112.13. I spoke with the collection agency/George and he had asked me to put $1400 on my account so that no further action or suing me would happen and this would buy me more time, at least another month. I explained how I am a stay-at-home mom, we are on 1 income and couldn't afford $1400 otherwise I wouldn't be in this mess! He asked if I could ask friends and family for the money or have my husband take out a loan. I said I would see and call and let him know in the next couple days.

I left him a msg last Tuesday saying wasn't able to come up with the money, would still try but the best I could do is make a small payment at the end of the month.
I made a payment of just $50 on the weekend. Today I received a v-msg from a gentleman by the name of Mark from the collection agency saying that he has an account in my name that has gone under scruteny from the creditors office. He was the admin that handles small claim issues. "If seeking legal attention you could have them fax the retainment to his office, Kindly govern yourself accordingly." What exactly does this mean???? He didn't even leave his contact number but does work at the same collection place that George was calling from.

Capital One credit card is out of the statute of limitations here in Florida. Capital One sent this to an attorney who sent me a letter saying that I agreed to a repayment plan. This letter says that they demand the full payment of 2,000. I have never entered into an agreement at all but they say that I agreed to pay a payment of $2,000 by September 28. This attorney wrote this letter but I did not agree to anything. Can an attorney make false accusations about payment plan I never agreed on? What can I do about this false payment plan? By the way the statute of limitations is up.

i have an old school debt of 4,000. from 2001. about a month ago i got a called from a collection agency saying it was 4,100 + 800. two weeks after that i got another called from another agency saying that it is 4,100 plus 1,800 on collection fees. i called them and explained to them i was already working with another agency in regards to that. and that i was still waiting for an itemized bill from them. they said they now own the debt and because this is the second agency to own this dept the fees are higher. so i told her that it wasn't clear to me why i own the school 4,000 to begin with. so she said she is going to get me a itemized bill from the school. i don’t get why they took it from the one agency i was already working with to another and raised the fees. is there anything i can do to bring it down to 4,000?
today i tried to call the school. i left voice mail for couple of people in the payables department. In my defense...I have had the same home address for the last 10 years and the school has never tried to collect any money from me.

Forgot to mention that i purchased a home two years ago and this dept was not in my credit report. i really had no idea of this dept.
#19 Subject: school debt in collection but never been called by school at all

this is how it works
you choose your school and apply for funding
funding can be a private or federal loan---
either way, the schhol is only helping you get the loan in order to enroll you in their school--they arent lending you the money

there is a lender on private loans--that's who you contact for all payment info...not the school

federal loans have a lender in addition to a federal guarantor--ie texas guarantee, national student loan program, etc

you the student once you get the loan, correspond with your lender,,,,,,,not the school..most times the "clerks" at the school arent knowledgeable on the whole process,,,,,,if you borrow money from a bank, why would u call someone else about your bill,,u wouldnt, contact the lender on your contract, not the school

the student never waits or ignores their contract..first of all read your contract,,,there are lots of fees including compounded daily interest and up to 25% collection costs added to your bill which can easily double or even triple your bill,,,depending on how loan its been defaulted, how long its been since the original date of contract,

you can never use the excuse that no one has contacted you on this until now,,,its the students responsibility to contact who they owe, remember you had no problem taking the steps to get the loan and it is up to u to take the steps to pay your bill......
remember most students have different addresses by the time you grauate or stop going to school, make sure you keep all creditors (especially federal loans) updated on your info,,,,how can they send you anything on this if you dont update with them directly of any add changes..dont depend on postal service for updating address,, the postal service only keeps records ofyour change for y6 months and simply forwards mail for 6m onths once you report add change to them,,,,you must must must contact each creditor yourself,,the postal service p acket includes this form...

from a collector of federal back student loans,,,,always keep file updated, never wait to hear from someone on your bill, and never direct your questions or concerns regarding your contract with anyone but the lender and possibly the guarantor of the loan,,,schools are trying to fill the seats, not help you beyond that point and most of the time they dont know what they are talking about,,, face the contract you signed and pay it,,,it will escalate in balance, fury, and lower your credit score,,,disability cks ssi and retirement and irs funds can and will be garnished on defaulted loan,,yes even ssi and disability since clinton in around 1991..

and never let an agency tell you that the only way to pay is by ck on the phone,,,,,mail money orders with some type of return reeceipt,,, if you mail a ck, some agencys will send you a letter stating that they will begin deducting from the acct info on the bottom of your ck,,,,,yes,, ive seen it,,,,mail a money order and kee p a large file to keep your contract and any and every letter of correspondence, pymts, record your calls if you can, and know the fair dept collections practices act////know your rights, but remember, the lender also has a right to get their money,,,whether you graduate, get kicked out of school, end of in jail or pregnant while in school,,you will still have to py back unless you get it in writing right then and their,,dont let the school say they will mail proof you withdrew from school and arent obligatedf to debt because most of the time its simply not the case, the guidelines in the withdrawal portion of the school handbanks lays this out in detail,,,again read everything you sign and remember if you sign you pay,,and dont get a plus loan with grandma and think you wont have to pay it back, if you promise grandma or whoever you will pay the loan if they sign, be sure you do,,otherwise grandmas disability cks ssi etc cn and will be garnished,period, no if ands or buts,,,,,if you do this to the primary on the plus loan, you are affecting their very limited income,,
i could go on and on about this, been doing student loans a long time,,,,and have heard and seen it all,,but just remember a contract is a contract whether you get a job with your ed or not,,a signature means you will pay it back period,,,,,,,,,,,,,,,,,,,,,,,,

Guest #30

continue from #21 and #22
Since i have asked for confirmation of my debt. would this restart the 7-year limit or can i continue to procrastinate taking action on this bill for another 6 months, for the debt tol fall off your credit report.

I was wondering if the person who wrote about the unknown school loan was able to solve the debt issue. I was also uninformed about debt sent to collections on a car that was towed while I was working abroad and we thought it had been stolen, until more than a year later when I pulled up a credit report I found a $1000 bill on my credit report. I don't know what the laws are on informing people regarding debt.

Guest #32

I have several medical bills that were not paid by my insurance so I am attempting to pay them off through the hospital. Two of my bills were given over to a collection agency even though I was paying the hospital a small sum each month. The hospital did not deposit my checks and sent me to a collection agency. I am paying them a small sum each month. I was told by family that I should just pay them what I could each month - I sent letters out each time explaining. Now the collection agencies are saying that they need more money and need to do a bank draft. Is there any other action I need to take besides continuing to pay what I can each month?

I am attempting to pay off a Hospital Bill by doing it $100.00 per month. The hospital has told me that they are sending me to collections because their policy is for the bill to be paid up in 90 days. I do NOT have $4000.00 and for that reason I cannot pay this bill up in it's entirety without doing so on a monthly basis...my options as far as the hospital is concerned is I agree to pay the bill up in one year's time OR go on an extended timeperiod (over a year's time) and if I do that interest will be added to my unpaid balance...This is ludicrous..This hospital that I am dealing with is on the same network of hospitals that my local town hospital is on yet my local hospital has NO problems with people paying an unpaid hospital bill on a monthly basis till paid in full...How is it possible for a hospital that is on the same "network" have a policy so different (must pay their bill in full by 90 days) yet my local hospital works with their debtors by allowing them to pay something monthly. I am on a fixed income and am 65 years of age (on disability)...what are my options ?...What is going to happen if this bill goes to collections?...I know it will impact my credit rating but at the same time if I am willing to pay $100.00 per month until this bill is satisfied why does this hospital have the right to send me to collections inthat the hospital in my home town which is on the same network as this hospital that is giving me this difficult time is, how can they do that and get away with it?

Kind regards.........a very upset person who is willing to pay her debt but at the same time in a "reasonable" manner.

I am having a difficult time with a collections agency right now..I have a debt that I haven't been able to pay for years and it is the only one left on my credit report that I really wanted to take care of. The original amount was only $1729.00 and now has gone to $3231.00. It has been passed through different collections agency and now an attorney's office who has now put a lien notice under my name(abstract of judgement). I really wanted to take care of this so I gave them a call last month and agreed to pay $500 until I get my tax return then i could make a settlement offer. The agent told me that they usually settle for 35% less so i agreed to do that. When I finally called them back, I spoke with a manager who was very rude to me and said she could only make the settlement $2200 but I really could only afford maybe $1800. I said I would call back because I would have to calculate to see what I could afford but when I finally did call back they told me they weren't going to take any settlement offers from me and that they would just have me pay monthly. I didn't want to do this because since I paid the $500 on march 28, not even a month later when i called back they have already put interest in my debt and that was in a matter of less than 2 weeks. and because I was so desperate to get this over with on my very first call I gave them all my information and even paying with check by phone..can you please tell me what is the best thing for me to do...thanks...

Hi. I'm writing because I call the hospital that stated I owe $148.00. It was back in December 1999. Now I was suppose to be cover under medicade during that time, but obviously I wasn't. They stated that they didn't pay for my visit because my maternal lead was up in July. I had my daughther in March 1999. They did not notify me that I was no longer under medicade. I had more complications after my pregnancy. Well when I visit the hospital they ran my card and told me that my payment was only $3.00. Now 8 years later they tell me I owe $148.00 which Medicade was suppose to pay for the bill. Well she stated that I was no longer on medicade at that time. I call the collection agency and told them the same thing that I'm telling you. I ask her can I dispute this because I didn't think it was right that I didn't receive any calls or letters to notify me about this balance. She told me I could but it will remain on my credit file as disputed this transaction. Should I automatically let it go off my credit report because it has been 8 years? Did I open this account back up for another 7 years because I ask could I dispute this account? What would you do?

Nice work, a good read! I will, however, mark one notable exception. You do not have a legal obligation to keep your creditor advised of you address and/or other contact information (Privacy concerns pervade here). Contractually, you have an obligation to pay the debt under such terms as were lawfully agreed. Period. You touched on it, in that it may be to your advantage down the road to keep your creditor advised as to your whereabouts, but again, there is no legal responsibility implied or otherwise.

I have not been able to pay my credit card bill for 5 months now because after college I had a hard time finding a job, and the reps tell me that after the sixth month period, they will send my account to collections or litigation if I don't enter a payment plan with them. I explained to them that I will have a job soon and I can start paying them regularly each month, but they said they have to automatic debit my account for a set amount of around $70 a month. I asked why couldn't I just send about $100 a month myself because I just don't like to give anyone control over MY bank account.

They said this would not work because with me doing it, their money isn't guaranteed and if I chose to do this they would send me to collections. My job is steady, but it is not 100% just as no job is 100%. If I allow them to automatic debit, anything could go wrong, and God forbid something were to happen with my job, and they continue to withdraw from my account. Then not only do I have a problem with debt, but I have an additional problem with the bank. On the other hand, I don't want to go to collections because of the daily phone calls and potential harrassment and bad credit marks. I really want to just pay them each month with me writing the check, not them taking my money out each month. I'm not sure what to do. Any suggestions??

I have a retail account that was put into collections late last year. I have made substantial payments and have reduced the debt by 1/2 (at least). I continuted getting calls from the collection agency so I called the institution (HSBC) and asked them if I could simply begin making the payments to them again since I had reduced the debt considerably. After some hesitation, they agreed to this and I discussed my minimum payments and the next payment due date. After speaking with them, I called the collection agency to inform them that I would no longer be going through them to make payments. They informed me that the account was still with them and that they could still pursue legal action against me for collections. Is there any truth to that? What do I need to do?

About a year ago I got an apartment with my friend, and we moved in together got set up in the first night and we got into a fight so i left and went to my aunties and when i came home the next night all my stuff was thrown outside in the hallway she wouldnt even let me in the apartment to get the rest of my stuff, about 4 months later i started receiving calls from a collection agency because i guess she didnt pay rent and she got kicked out, the collection agency would call me at work 2-3 times a day everyday for weeks! They wouldnt leave me alone i had to get people to answer the phone and say i didnt work there because they were harrasing me, i was 17 at the time and im on my own so i didnt know what to do so i ignored them and any mail i received i sent back. The payment is for $800 dollars and it is on both mine and my ex-friends credit. before i started ignoring there calls i asked if i could pay half and have it taken off my credit and the other half is her responsiblity, they refused and said that it has to be paid in full and it will be taken off. I have tried getting a bank loan and of course i get rejected because this is on my credit. I cant afford to pay that on my own, what do i do now, any suggestions?

Hi,
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Don't you think it's a fair deal with lots of options :)

...I owe 10 000$ ...I got deported from Canada two years ago I was dodge drafter... lost my job and chance for earning. I was drafted in army ... Serbian army. We get 20$ a month ...like, for some smokes. Now I am out ...but I have no job, and I spend all off my visa money. Collection agency is calling my old place in Guelph, ON. My landlord opened my mail and informed my cousin that I owe money...I am so ashamed ... she is crying afraid that collection agency will take her money instead ...because she is my cousin and she got me in Canada in first place.... but we never had a joint account or ... she is just my family. So ...now I have some hard time, because I am not sure if collection agency can go after my family ... because I am not in Canada anymore... If anyone can help... thanks guys.

Four months ago I took in a young woman who has problems with her parents and nowhere else to go. She is polite, intelligent, and hard working. However, in the past she shared a place with two other roommates and foolishly put the cable tv in her name because they had bad credit. One of the roommates took the cable box when they all moved out, and never turned it into Rogers. She has spoken to Rogers about her efforts to track down the roommate with the box, but they sent it to a collection agency, and the agency now has my number.

Last year I PAID almost 90.00 for an unlisted number because I was fed up with surveys, marketers, and umpteen charities phoning every month. Now some relative of our guest has passed along OUR number to contact her, and they phone 3 or 4 times a day. Her explanations of what she is doing to find the box don't cut any ice with them.

Finally I had a chat with them myself. I explained that I am owner of this phone account, and in no way related to our guest or responsible for any of her debts. Their response was that they would remove my phone number from their call list when I could provide them with another number. I said I didn't have another number for them because she's staying with us, but I'm tired of all the calls and I can't do anything about her situation with Rogers. I also pointed out that I had paid for an unlisted phone number just last and was not happy that someone had passed along our number as a contact number for someone who isn't a member of my family or household. They repeated their first response.

Next I phoned Bell and explained the situation. They gave me a number for a NEW National Do Not Call list. (I was already on one, but forgot to mention that to IQOR Canada - the collection agency.) I'm waiting with baited breath to find out if collection agencies respect Do Not Call Lists. It looks like it would be too easy a way to evade collection agencies for people who really do owe money.

I'm being called from a collections agency for an apartment that I lived in with my parents I was on the lease because I was 18 but I never paid rent and didn't even know that they hadn't paid. What do I do I've explained this to the creditor but of course they don't care.

My wife got this call the other day from one. It was for her med bills. She told them she could pay 20.00 a month. they told her that was not good and if she sent a check for that they would send it back. Now she told them she was no job and so on. Can they refuse money?

It is my understanding that they can refuse but if you can show that you offered them a payment and sue them that the debt will be erased!

Guest #47

My wife is trying to pay her medical bill and sent a payment out to them on the 10th of July. I just now got my payment check sent back to her today 18th of July. What do you think we need to do now?

Guest #48

That money that the bank lent you was not their money in the first place to lend to you so why should you par it back? You guys don't even know from where the banks get your money from to lend it to you in the first place do ya? I've done research and boy are you in for a big suprise. Money lent out to you is printed by the federal reserve on the basis of your "ability" to pay. This is credit money. This is money that does not come into existence untill you sign a "promissary note" with a promise to pay. They take a risk on you or a "gamble". It's like hitting the lottery for them. It cost pennis on the dollar for them to print your money that is then processed through a broker"the bank" and if you for some reason lose your job or can't pay it back then they lose unfortunately, but not much at all. Remember it cost the federal reserve which is neither a government agency nor does it hold reserves, almost nothing to print the money. They printed money you needed according to your promissary note. If you do pay back the money then they get to keep the money you sent them that cost them nothing to print it up in the first place. So they in turn get free money. And this from you! Get me so far? Since its free money for them(the federal reserve),They are willing to settle for 10%or 20% of what you owe on your credit cards, and this is a known fact. A known fact that they don't want you to know. That's why "bankruptcy" exists. And we know that you don't go to jail for filing bankruptcy. As long as your not part of a fraud scam. If you claim bankruptcy then all that money you borrowed just confirms hat the money you "so called borrowed was yours in the first place and was created out of need. Anyway I don't want to confuse you. I hope I didn't.

This post is a sham and offers completely unreliable facts about what a creditor's rights are with respect to trying to collect on a debt. Every statement under each Section 1-9 contains falsities and out wrong legal inaccuracies. I would not trust this person or site. Nuff said.

I don't know if you all would understand when I say that I have a horrible story that right now I don't care to repeat or bother typing it all out. I paid twice the amount originally owned anyways and they failed to provide me any proofs or statements that I paid off. I contacted the original creditor, since I found out that the account was not sold, and they told me that the collection agency has not given them any paperwork saying I paid or payments that I have made. I know I should have made them given me a statement in writing but you don't know the verbal abuse and mental abuse I've gone through. Even if I can sue, I have no evidence to prove it. What do I do? Any advice will be appreciated.

In September this year, my wife got a call about us repaying an 8 year old payday loan in a state where I lived 12 years ago. We sent a certified letter sating I had never taken a payday loan from thier client(or anyone, for that matter)and requested documentation, but we never received a response. Now, I have been called about it from an agency in my current state, stating the debt had been sent to arbitration in the other state, and they had a court order requiring me to pay the debt, plus penalties and interest. They have my driver's license I. D., and all necessary documentation needed for them to pursue collection. I denied ever having incurred this debt, and told them I was contacting my attorney. I even gave them his name and his firm, at which point they refused any further communication. Now my employer has notified me that my wages are being garnished! Any idea on how (and if) I can fight this?

The $3200 remaining charge on a hospital bill is due to a flagrant error in the diagnosis of an illness (both the emergency room and the subsequent Doctor ignorred the in-hand file with previous similar symptons). I indicate "remaining charge" because the hospital rec'd about 10K in insurance reimbursement.

The bill is now two years old. Hospital has refused to credit the charge after numerous letters and phone calls. The validity of my claim has been verified with another Dr. in another hospital. Nevertheless, it has been referred for collection.

I intend to continue to deny the validity of the charge. What happens now? What do I tell the collection agency?

I purchased a car 2 years ago and always made my monthly payments. I got unemployed in April of 09 and it became difficult for me to make my car payments in full or on time. I kept in contact with the bank, but after a while my car was repossessed because I was no longer able to pay at all.
The bank sold the car to an auction and the bank wants me to pay for the negative balance on my car of $11,000.
This debt has been forwarded to a collections agency 3 weeks ago. The collections agency is willing to lower the fees by 40%. I told the collections agency that I will pay by sending them a monthly check.
The problem is that they argue with me by wanting me to provide them with my account number! I have been in contact with them and I refuse to give them my information but they argue that the bank does not trust my word in paying since I am in "breach of contract" due to not paying for the car. They said if I don't give them my account number they will forward my account to an outside legal network.
They state that by providing my account number they have in writing and proof for the bank that I will pay.
They are not giving me any other choice and they refuse to back down from it. What do I do? I don't know if they are right and I SHOULD give them my account number? I feel we will be arguing in circles about the matter.

I am very confused recently about my credit. A few years back i had major issues and i could not make payments on my car and on my credit cards and i ended-up having an accident on a car that was about to get repo. I have been looking up my credit because i was in another car accident not at fault and i am going to be settling for pain and suffering and have an attorney. I was considering filling bankruptcy to get rid off all off that but i saw that most of my credit cards are not showing up anymore most of the things happen end off 2006 and saw that my cars lender citi sold it to collection agency ..portfolio recovery associates that are in another state, i currently still don't have a job i have been denied jobs due to my bad credit i am a college student surviving only out of my financial aid, i have nothing they can possibly come after only the pain and suffering what ever remains after the attorney gets his share and the medical bills get paid off that are around 6k at the moment but my health insurance have been paying the 80/20 so far... any advice on how should i proceed...

Hey,
I had a few questions. I recently was contacted by a CA , Im 20 years old, married and a homeowner.. I cosigned for a family friend for an high end apartment in Los Angeles, ca. They couldn't pay it and had to move out. When she moved out, we both signed a payment plan that should would pay from her family. Turns out she never did, I was contacted by phone in August of 2009. I spoke with a man from FCO( Fair Collections & Outsourcing), he told me that she didn't pay and it was turned over to collections. I was scared and spoke with the person I cosigned for. Their plan was to pay it and again it was ignored. This march 2010 I found out that 2 or 3 computer generated print outs were sent to the wrong address which was my parents home. They throw out all junk mail. I then spoke with them in March about, and told them it was incorrect address, then I said I wanted to take action and make payments towards the debt owed. He then told me the debt went from the original amount of $6861.34 to almost $11,000. I said why did it go up and he answered because it did! He then said he could settle for $8800.00 , I cant afford that, he said I could try and get a loan from a bank to pay off the debt. He said if i couldn't be approved I had to send the letter of denial to him. I was denied for the loan, but I didn't send it to him, he didn't ask. So then I proceeded with trying to arrange affordable monthly payments. He said ok but I had to pay with a debit or check. I then said I would call him back. Since then I have spoke with some legal people. I then wrote a letter of debt validation to him, I sent it certified mail with return receipt. I stated in the letter that it WAS NOT A REFUSAL TO PAY, but to validate the debt. Then I said I would like to be contacted at the new address only through mail and not over the phone. What else should I do? Should I wait for it to be validated and then make payments with a money order or cashiers check or wait til the end of the year when I can afford to pay the settlement fee of $8800.00?
Im so confused , I have great credit and never had this happen to me!
Please any advice would help ease my mind!
Thank you!!!
-Worried 20yearold

This is in reference to collection agencies on medical bills. I had cancer back in 2004 and was single then. I had a lot of medical bills my insurance didn't cover so I was making as much on them as I could. The hospital where I had my radiation at wouldn't let me pay them a little at a time as I was having the treatments. They told me to wait and see what the insurance covered. After the insurance paid, the sent me a statement wanting the full amount old because the bill was 3 months old and this was the first notice I had recieved. I set up payments with them and after 2 months they sent it to a collection agency. I spoke to the lady at the collection agency and set up a small payment plan. She did not tell me what the due date was she only said it had to be there every month. I have complied with this and was late only one time and this was back this last november. The lady no longer works for them and the new one is telling me that my payment was set to low and said I had to pay the amount she was requesting. I told the lady I could only pay what was on the original thing and she got mad and told me if I was late once she was upping my payment. Since then my payments are being sent to me late and one month I had payed two months and now she is saying I am 30.00 dollars behind. She is also telling me that I have to pay only the amount she says. I asked her if she was refusing my original payment, she stated she was sending me a profile to fill out so they can see what I can afford or not. Do I have to fill this profile out or do I stick with my origingal payment? And what if she refuses my payment what are my options?

Here's a question...... back in 2003 my hubby and i bought a campground time share. we paid 9000. for the so called membership, and were told that we would pay annual dues of 499. at two payments a year. We were also told that we would have no problem selling if we ever wanted to unload it. It was great at first because we actually used it. However, our lives changed financially and we stopped going after a while due to lack of funds. We continued paying the annual fees, but then the company changed names and for some reason we stopped getting mail from them, or so we thought.... We were getting mail from them, but didnt realize it because they changed the company name. So yes we did forget about it and didnt pay for a year. When they finally contacted us they demanded full payment and I talked to my hubby who said he would take care of it.(that was 2007) Well, he didnt. So here I am 4 years later and I get a call at work from the collections dept of this company. They were the rudest people I have ever met. They told me they would ruin my credit forever. It was terrible! I dont understand how I have had the same telephone number and address for 15 years and yet they never called me in 4 years. Then when they do call me, they say I owe this amount of 2000. dollars that has to be paid in full due to default. They say they have the right to get it all....with no possible payment plan. That is just insane.... I am a good person, and I dont know what to do.... I dont want bad credit.... but they just wont listen.... they hung up on me twice....someone give me answers....what should I do....? can they make me pay all up front?????

I am a collection agent. Most of these things are not going to help you. You can not simply just say you can only pay $X amount and get it. There are certain criteria we have to follow. We can only go so low on a payment. By the way, we never hang up on you either! Also keep in mind, we can not send everything in writing...

No documentation "in Writing" to us from you = NO money paid to you by us!
Period.

yep #60

Catherine-either you do not know your job or you are just being foolish. When settling on a payment agreement you must have it in writing, so both parties understand this agreement. If I had you on the phone and you gave me this kind of statement(we can not send everthing in writing...) I would hang up on you asap. You are making your statement on a one way street (your street).

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I have a debt from a sleep study I did in February. I have been under the impression that my insurance would pay for it all, but they paid only half. I have been employed "full-time", but there has not been enough full time work for me to make any decent-sized payments on this debt. The medical center that the study was done at has its own collection agents and these are the people I am dealing with. I told them I would pay them $25 bi-weekly as I am paid every other Thursday, and this would be done through my debit card. Last month, I was robbed while on the job with a different employer. My debit card was canceled, but the credit union somehow "forgot" to order me a replacement. It has taken me a month to get a new one. The agent called me while I was on the job (I drive tour buses) and while I was on the phone with her, a police officer approached me with questions I was obligated by law to answer. As politely as I could, I told her what was happening and that I had to hang up, and did so. A few days later, I called her back and apologized and explained why I'd hung up. She went through the roof, accusing me of not making a payment on time. As it turned out, she was correct and while I tried to tell her I would take care of it that day, she just shouted me down. I shouted back at her and hung up on her.
I now have a replacement debit card, but I am fairly certain it has the same number on it as the old one and I know this harridan is going to accuse me of pulling some scam. I plan to go into their office (located in the med center annex) and give them the new information and then offer to make occasional walk-in payments of extra amounts. I feel I will have to either tell them in person or on paper that these extra payments are not scheduled payments, nor are they always going to be for the same amount. I am trying to take of this mess, but I cannot deal with the overbearing nastiness and the repetitive "You promised!"
~AD

This article is inaccurate in one regard. It states that action on an account will reset the 7 year reporting time. This is NOT true!! According to the FCRA, most items are only reportable for seven years from the date of original delinquency. The only exceptions are (1)bankruptcies: 10 years, (2) judgements: statute of limitations or seven years, whichever is longer, and (3) tax liens: seven years from date of LAST PAYMENT.

It simply amazes me that there are no enforceable laws that these agencies have to abide by. These agencies hold our credit hostage, and have no consequences for there actions, and screwing our credit up when they make mistakes. They only thing they care about is money, so in order for them to play as fair as we have to, why aren't there fines put in place for these companies when they screw up? The more they get fined, the more they will pay attention to what they are doing, and the more respect they will have for us. Fine them thousands of dollars, and make them return the money to the customer, they will start doing the right thing guaranteed. In my situation, my collection was fraudulent, and because I wanted to buy a house, I had to pay it. Even after telling the collection agency, AND credit companies my collection is no longer disputed, I was still turned down for my mortgage. EVEN THOUGH I PAID IT OFF. Completely and totally ridiculous. Why is this able to happen in our country? Why is something not done about it?

My girlfriend has a debt with a hospital and they have passed it on to a collection agency i was wondering it the collection agency is allowed access to hospital records to ring the in case of emergency numbers to hound them to get to us
yours sincerly stuart

I owe 16K on student loans to State of NJ they want me to pay 181/month but I can't afford that. I told them I can afford 50/month but they refused. This debt is set to expire from my report in 2017 and even if I paid 181/month for the next 6 years I won't have this paid off. Also I believed they garnished my last tax return if this trend continued then it may never expire from my credit report because the information will keep updating every time they take a payment. What do you suggest I do? I can't afford what they're asking for. What will happen if I choose to just not pay? Can I get them to stop garnishing my tax return?

As a collector dealing mostly in medical debt I have some advise that even I follow myself. Most of the time when I talk to people there is an insurance issue so I always advise that the debtor take care of the balance to the beat of their ability until the insurance company pays. Then you can always prove that you paid to the insurance and they in turn will reimburse you if they were in fact supposed to do so. I have had this happen to me a few times and it has saved petty small balances from being reported to my credit. Also, like i believe another collections consultant said in an earlier post we can not always just accept whatever you can pay when it comes to holding something off your credit. There is almost always a minimum balance on a debt that we are able to take. That is not us being harsh but if we are not an agency that buys the debt then we work directly for the client so no say in the criteria they lay down and how they want their debts collected. Believe it or not some of us are not evil devil like creatures that everyone makes us out to be. We are just trying to collect money that was not paid for a good/service that was provided to someone . Without us the people who provide those goods/services would have no choice but to raise their prices to compensate for the money they lost. Everyone has an obligation to pay their debts otherwise no one would make money in this world. We get a bad rep because we deal with boat loads of people everyday who will do anything to make sure they do not have to pay their debts. Its a hard job but someone has to do it.

When you are going to deal with the debt recovery officers or debt collection companies, you have a lot of rights for debt repayment and this is due to Fair Debt collection practices Act. Thanks to them. By the way, great article.

A cable company claimed that I had lost their equipment, which I hadn't. After fighting with them for two years+, countless hours on the phone, a BBB report filed against them, they finally reneged this (they are sending me a letter in the mail to document this). However, the account has already gone into collections. They are also sending the collection agency a letter saying that they messed up and need to reverse the charges. However, my credit score has dropped 100 points since this went into collections. Once I have my letter from the collection agency, do I have to call the credit bureau to let them know about this? How can I fix my credit score that they messed up? Thank you.